$2.$a$.$ Assume that you have been asked to place a value on the fund capital $($equity$)$ of BestHealth, a not$-$for$-$profit HMO. Its projected profit and loss statements and retention requirements are shown below $($in millions$)$:

Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Net revenues $$50\mathrm{.}0$ $$52\mathrm{.}0$ $$54\mathrm{.}0$ $$57\mathrm{.}0$ $$60\mathrm{.}0$

Cash expenses $$45\mathrm{.}0$ $$46\mathrm{.}0$ $$47\mathrm{.}0$ $$48\mathrm{.}0$ $$49\mathrm{.}0$

Depreciation $$3\mathrm{.}0$ $$3\mathrm{.}0$ $$4\mathrm{.}0$ $$4\mathrm{.}0$ $$4\mathrm{.}0$

Interest $$1\mathrm{.}5$ $$1\mathrm{.}5$ $$2\mathrm{.}0$ $$2\mathrm{.}0$ $$2\mathrm{.}5$

Net profit $$0\mathrm{.}5$ $$1\mathrm{.}5$ $$1\mathrm{.}0$ $$3\mathrm{.}0$ $$4\mathrm{.}5$

Estimated retentions $$1\mathrm{.}0$ $$1\mathrm{.}0$ $$1\mathrm{.}0$ $$1\mathrm{.}0$ $$1\mathrm{.}0$

The cost of equity of similar for$-$profit HMO's is $14$ percent, while BestHealth's cost of debt is $5$ percent. Its current capital structure is $60$ percent debt and $40$ percent equity. The best estimate for BestHealth's long$-$term growth rate is $5$ percent. Furthermore, the HMO currently has $$30$ million in debt outstanding.

Using the free operating cash flow $($FOCF$)$ method, calculate BestHealth's free operating cash flow in Year $1.$

Write your answer in millions of dollars. Round to one decimal place.

$2.$b$.$ Continuing with the previous question, what is the free operating cash flow in Year $2?$

Write your answer in millions of dollars. Round to one decimal place.

$2.$c$.$ Continuing with the previous questions, what is BestHealth's corporate cost of capital $($CCC$)?$

Write your answer as a percentage. Round to one decimal place.

$2.$d$.$ Continuing with the previous questions, what is BestHealth's terminal value at date $5?$

Write your answer in millions of dollars. Round to one decimal place.

$2.$e$.$ Continuing with the previous questions, what is the value of BestHealth's equity?

Write your answer in millions of dollars. Round to two decimal places.